Country Report Hong Kong June 2011

Outlook for 2011-15: International relations

Under Hong Kong's mini-constitution, the Basic Law, defence and foreign affairs are the preserve of the central Chinese government. The Hong Kong government has authority over domestic matters and external issues relating to trade, such as the territory's membership in its own right of the World Trade Organisation. Hong Kong would be affected adversely by any deterioration in China's relations with other countries-a significant heightening of Sino-US trade tensions, for example, could hurt market sentiment in Hong Kong and also affect external trade. Foreign governments have generally been reluctant to interfere in Hong Kong's internal affairs, although the US and the UK publish regular reports on subjects such as freedom of speech and progress towards democracy in the territory.

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